Thursday, April 16, 2020

Report: Residential Security System Adoption Jumps in the United States

2020 will bring new challenges and opportunities as consumers reduce spending and economy struggles with stay-at-home restrictions

New research Residential Security: Consumer Insights 2020 from Parks Associates finds security system adoption, after holding steady at 25-28% for over five years, jumped up to 33% of US broadband households at the end of 2019. This growth comes as consumers have more options, including DIY and ad hoc monitoring through smart home devices. Parks Associates' research emphasizes that 2020 will bring new challenges to the security industry as the COVID-19 pandemic is rapidly impacting the economy and consumer attitudes and behaviors.

"Year-end 2019 represented a big win for the residential security industry, but in 2020, the industry has to contend with the COVID-19 pandemic and its economic implications," said Dina Abdelrazik, Senior Analyst, Parks Associates. "Consumer demand for safety and security has long been considered a persistent driver through any market conditions, but the Great Recession showed home security is not recession-proof. Security firms need to continue to innovate and to pivot messaging to emphasize DIY options and family safety to ensure consumers see the essential value in their solutions."

Residential Security: Consumer Insights 2020 presents the consumer perspective on the residential security market, with a nationwide survey of 10,000 US broadband households fielded in 4Q 2019 and trending data from 2014. This research quantifies major trends in the market, including analysis of competition, self-installation, the adoption of interactive services and home controls, and the impact of standalone smart products.

Parks Associates' latest research COVID-19: Impact on Consumer Spending and Behavior finds three out of four consumers say they are "cost-conscious" as a result of COVID-19, so many households are already reassessing household services to reduce expenses.

"At the end of 2019, 16% of US broadband households were planning to purchase a security-related solution in the next 12 months," Abdelrazik said. "Current conditions will impact purchase behavior, but safety and security remain top-of-mind for households—whether it be through a professionally monitored solution or a networked camera, consumers want to feel that sense of security."

Additional Parks Associates security data:

52% of security system owners who acquired their security system in the past 12 months self-installed their system

Self-installers are more likely to be satisfied with their security system than are households that used professional installers.